MoneyTeumWhy payday-based budgets work better
New living expenses do not accrue on the 1st of each month. The amount you can spend today is realistic if you count the period from the actual money coming in to the next income date as one period.
A month on the calendar is different from a month in my wallet
If your salary comes in on the 25th and you only group expenses from the 1st to the last day, the money before and after the 25th will be mixed in the same month's statistics. Even though the statistics seem correct, it is difficult to know whether you will be able to survive until your next paycheck. The payday-based budget considers the period from the 25th to the 24th of the following month as one living expense period.
The living expenses received on September 25th will be used until October 24th. We don’t start a new budget until October 1st.
How total money left is calculated
Set this month's total money first. Actual spending reduces it, while unpaid fixed bills remain upcoming. Turn on only the living, allowance, or emergency budgets you want to track separately.
How to set up on MoneyTeum
- Tap the large balance card on Home.
- Enter your actual payday and this month's total amount.
- Turn on the living, allowance, or reserve budgets you need.
- On the fixed cost screen, register monthly rent, communication fee, insurance premium and payment date.
- Choose which budget to apply when recording an expense.
If the payday is a holiday or is different every time
Even if paydays move back and forth due to holidays, it is easier to compare statistics if the base date is the regular payday set by the company. If you are a freelancer whose income date varies greatly from time to time, use the most conservative expected income date as a guide and include only the confirmed amount in your living expenses budget.
Don't set a budget that's too big at once
- Deduct savings and investments separately before adding them to your living expenses budget.
- Do not double-count card values with already recorded expenses.
- Bonuses and refunds are recorded as income after they are actually deposited.
- Secure large expenses scheduled before the next paycheck as fixed expenses first.